The Inside Edge's recent article on outsourcing sparked such interest by readers that we asked additional managers to share their best outsourcing defense strategies and why some have never needed to defend their operations.
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When our press operator retired ten years ago, the question was, do we hire a new press person or outsource? They let me identify a consultant, Jack Klasnic, who had an extensive printing background and a degree in finance. He spent one week and gave us a complex overview. He said, "If your in plant is worth saving, I will fight to for you, but if not, that will have to be in the final report to the President."
You need to choose a consultant who is pro-in-plant, not a bean counter that sees no value in having a shop or doesn't even know what a print shop does. Some said that I could save money by evaluating myself by calling commercial shops, getting bids and submitting a report. That tells administration nothing. You need a fully documented report from an outside source. Our consultant provided a 128-page document. He conducted private surveys with our customers, plus provided us with new solid cost-saving recommendations. Had I been my own self evaluator, I highly doubt we would still be here. I did not have the knowledge that our consultant did. He knew what administration wanted and needed.
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Two years ago we were on the President's list of cutbacks. He said everything should be put on the web. We did a cost comparison of 100 items that the department heads stated must remain in print. The results showed that we were saving the college money and the President said we did a great job of showing that. Because we have upgraded equipment so that students help can operate the equipment, we have reduced staff by one full-time employee.
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We have not had to defend ourselves against that threat. Fortunately our VP of Finance and Administration does not believe in outsourcing. We do however have to continually sell our services and provide superior customer service since we do not have Right of First Refusal.
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I continually get quotes from outside vendors on printing requests I know we are capable of handling in-house, do the cost comparison, in-house vs. outside vendor, and pass on the savings information to my V.P.
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Fortunately we haven't been faced with outsourcing concerns and I don't expect that we will. Our Administrative Council has really made a commitment to keeping services in-house. I think it might help that we handle the mail too. I know mail is more challenging to outsource than printing.
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Senior management is looking to improve profits and the bottom line. Some (savings) can be achieved simply in the short-term of 2 to 3 years by eliminating positions and departments. These decisions are usually made by those who don't understand the processes or the benefits in-house printing brings to an organization.
Prove you are competitive -- as Department Manager, you need to communicate your value. Compare apples to apples by getting outside costs for different jobs. For us we are driven by print deadlines. Only the most dedicated companies with a lot of machines can turn our products around faster; but because of their rush costs, their pricing makes us look like we are the best of the best.
Identify your strengths and weaknesses -- the challenge is managing so your parent organization saves time and money. There are times when we outsource, but for our basic material, we manage it all and ship around the world. To be most effective for your organization, know your strengths and weaknesses, as well as your company's actual needs.
Personal investment in company -- another huge plus for keeping work in-house is the investment that you and your staff have in the success of your organization. This factor is the hardest to measure. A combination of print, video, DVD/CD, and written word along with designers all working together to establish company branding, along with great customer service makes the difference between great and not-so-great companies. For the outsourcing firm, your company is just another number in their profits. On the front end your company will be catered to, but in time the outsourcing firm will raise your rates and their quality and/or turnaround times will take a nosedive.
Loss of control - the outsourcing process takes away company control of its own internal business and company executives lose sight of what got them to the dance in the first place which is simply people working together to provide the best service and quality in all parts of the company.
Research facts -- sometimes tough choices have to be made, and if not managed well, any department becomes a risk. Research all the facts -- both good and bad. Decide if your department has the people and equipment to compete.
Gain management support -- if you are competitive, lay the groundwork with senior management and gain their support. You will reap huge rewards for the organization and the people who work for you and maybe even help create more jobs or promotions along the way.
Show your support 24/7 -- I've had to defend our department many times because of turnover and changes within our organization. Changes occur daily so you and your entire staff must prove yourself daily. You can no longer consider your job safe unless you prove it safe. It's up to you and your people to show you are doing everything to support your parent organization.
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We have not had outsourcing threats at our college. My team is a division of IT. Six years ago the management of IT (CIO and two other technical director positions) was taken over by an outsourced IT company. College printing survived and continues to provide a solid service to our college. I feel confident of our future.
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Fortunately, we haven't had any outsourcing threats in the last 15 years.
